Cynthia Gaylor: Yes. And I may–
Rishi Jaluria: Sorry, go ahead.
Cynthia Gaylor: Yes. Sorry, I might just add to that. The — our fiscal 2024 is calendar 2023, right? So, that’s — it’s an outlook. It’s not a guide; 90 days from now we’ll give a more specific guide, so we’ll be able to give you more detail there. Understand what you’re talking about in terms of calendar 2023 into calendar 2024. As we said, we would expect the first half of next year to be kind of get off to a slower start, and that’s partly macro and it’s partly the initiatives that Allan was talking about. We are going to take some time to gain traction. And so the scenario where, I guess, calendar 2024 could be better would mean that macro has probably gotten better and then some of the initiatives are starting to take off.
And you start seeing that in the back half of next year, because that can spill into the following year. I would just say, though, our — when we give guidance and we give outlook, and you all have been following the company for quite some time, there are opportunities and there are risks. And we’ve, I think, balanced those things in what we’re telling you in the spirit of the 2024 is really to provide transparency to what we’re currently seeing, but it’s still balancing those opportunities and risks. So I just want to make sure that you all understand that.
Allan Thygesen: Yeah. I mean, I think what I would just add to that, Cynthia is exactly right. What we’re giving you now is an extrapolation of our current trends. We have a lot of levers that we’re pulling, and we hope to be able to update you on those over the course of the next several calls. We’re bullish on long-term prospects. We think we have a lot of headroom and are very well-positioned.
Rishi Jaluria: All right. Fantastic. Really helpful, both of you. Thank you. And then just a quick follow-up. If we think about the margin, not guidance, for next year, you’re talking about the low end to about 20%. I guess given that you also have all these cost savings that you’ve been working at generating over the past quarter, two quarters, a 9% rip. I imagine that a lot of the upside that you’re getting from those cost savings, you’re reinvesting in the area. So maybe can you walk us through why would margins not be higher. And if it is, in fact, you’re just reinvesting in other areas, what are those top investment priorities that’s getting that margin to 20%, again, in spite of the cost cutting focus and the 9% rip? Thank you.
Cynthia Gaylor: Sure. I’ll talk about the margin and then Allan can talk about some of the investments. So on the margin, our long-term target margin has been 20% to 25%. So we’re expecting to be at the lower end of that into next year would be what we’d expect. So we would get some uplift from the restructuring that we’ve done and are in the process of completing. But we — as you said, we would be reinvesting in the business. And it’s — a lot of it is around things like international, the go-to-market initiatives and R&D in particular. And those pieces, I think, are going to be really important.
Allan Thygesen: Yeah. Just to add to what Cynthia was saying, look, I think our go-to-market motion needs to become more efficient. We need to grow into — we’ve made some adjustments. We need to grow into the infrastructure that we have and do a lot more on the digital side, as I’ve alluded to. So that’s an area where I would hope to see our metrics continue to improve. I feel differently about our R&D investment. We are, frankly, below many of our SaaS peers in terms of our divestment relative revenue. And I think we have a lot of ideas, a lot of opportunity here. And I think we — to the extent that we invest beyond baseline, that will probably where the bulk of it goes.
Rishi Jaluria: Wonderful. Thank you so much.
Operator: And our next question comes from the line of Kirk Materne with Evercore ISI. Please proceed with your question.
Kirk Materne: Hi, there. Thanks very much. Allan, maybe following on to your last comment on the go-to-market. Have most of those changes been put in place, I guess, to date? Obviously, some of those it’s difficult to do that as you’re trying to close up a fiscal year. Or are you waiting to sort of instrument some changes, perhaps on the direct side, as we get into the beginning of next year? I was just trying to get a sense on if there’s still some — I assume there’s always going to be some tweaking, but have some of the more fundamental changes been established, or is that something that you’re still waiting on doing once you close out this fiscal year?
Allan Thygesen: No, we’re not planning any broad efforts risk type of structures along the lines of what we did for the whole company last quarter. We’re going to continue to tweak. I mean, I think the market environment is dynamic. We’re going to continue to move resources around, as I alluded to. And individual functions and departments in the go-to-market function elsewhere, I think we’ll see some prioritization or de-prioritization. But I’m not looking to do anything at the macro company-wide level. I do expect that we will get significantly more productive and efficient in our go-to-market motion and that’s a hugely for us. In addition to the digital side, we’ve had an all-hands-on-deck effort to remove friction internally and to just realign and combine functions.
We were overly segmented, I believe. And so there was just a lot of work to get our field operation organization in a better state. I think Steve Shute, our President of Fuels has done a very nice job pulling that together, bringing in senior leaders. And I think we’re much better poised to grow with the resources that we have today than we were six months ago. And some of those initiatives that I alluded to on the self-serve side will obviously bear more fruit in the next few quarters.
Kirk Materne: That’s really helpful. And then, Cynthia, really quickly, you brought up, obviously, in the cash flow discussion the ERP implementation. Are there any other big systems that need to be sort of upgraded given you guys have scaled so quickly, or is that sort of the biggest one that was outstanding? Just trying to get a sense if that’s another area of potential spend for you all next year.
